Exam 4: Mutual Funds and Other Investment Companies

A mutual fund had year-end assets of $465,000,000 and liabilities of $37,000,000.If the fund NAV was $56.12, how many shares must have been held in the fund?

Assume that you purchased shares of a mutual fund at a net asset value of $10.00 per share.During the year, you received dividend income distributions of $0.05 per share and capital gains distributions of $0.06 per share.At the end of the year, the shares had a net asset value of $8.16 per share.What was your rate of return on this investment?

Which of the following is true regarding equity mutual funds? I) They invest primarily in stock. II) They may hold fixed-income securities, as well as stock. III) Most hold money market securities, as well as stock. IV) Two types of equity funds are income funds and growth funds.

Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share.During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share.At the end of the year, the shares had a net asset value of $13.87 per share.What was your rate of return on this investment?

Multiple Mutual Funds had year-end assets of $457,000,000 and liabilities of $17,000,000.There were 24,300,000 shares in the fund at year end.What was Multiple Mutual's net asset value?

Which of the following statements about real estate investment trusts is true?

The Profitability Fund had NAV per share of $17.50 on January 1, 2016.On December 31 of the same year, the fund's NAV was $19.47.Income distributions were $0.75, and the fund had capital gain distributions of $1.00.Without considering taxes and transactions costs, what rate of return did an investor receive on the Profitability Fund last year?

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Nasdaq 100 should choose

A review of Canadian mutual funds by investment orientation at year-end 2017 shows that over half of assets were in

You purchased shares of a mutual fund at a price of $12 per share at the beginning of the year and paid a front-end load of 4.75%.If the securities in which the fund invested increased in value by 9% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would be

A mutual fund had year-end assets of $437,000,000 and liabilities of $37,000,000.If the fund NAV was $60.12, how many shares must have been held in the fund?

Growth Fund had year-end assets of $862,000,000 and liabilities of $12,000,000.There were 32,675,254 shares in the fund at year end.What was Growth Fund's net asset value?

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the S&P 500 should choose

A mutual fund had year-end assets of $327,000,000 and liabilities of $46,000,000.If the fund NAV was $30.48, how many shares must have been held in the fund?

Which of the following would increase the net asset value of a mutual fund share, assuming all other things remain unchanged?

Of the following types of mutual funds, an investor who wishes to invest in a diversified portfolio of stocks worldwide (including the U.S.) should choose

A mutual fund had NAV per share of $26.25 on January 1, 2016.On December 31 of the same year, the fund's rate of return for the year was 16.4%.Income distributions were $1.27, and the fund had capital gain distributions of $1.85.Without considering taxes and transactions costs, what ending NAV would you calculate?

Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Wilshire 5000 should choose

Investors' Choice Fund had NAV per share of $37.25 on January 1, 2016.On December 31 of the same year, the fund's rate of return for the year was 17.3%.Income distributions were $1.14, and the fund had capital gain distributions of $1.35.Without considering taxes and transactions costs, what ending NAV would you calculate for Investors' Choice?

You purchased shares of a mutual fund at a price of $20 per share at the beginning of the year and paid a front-end load of 6.0%.If the securities in which the fund invested increased in value by 10% during the year, and the fund's expense ratio was 1.5%, your return if you sold the fund at the end of the year would be